I was born, bred & educated in the UK, but left for Canada a couple of years into my career for better jobs and opportunities.
When I left the UK nearly 20 years ago, Canadian salaries were about 20-30% higher than the UK for comparable positions. Over the years, particularly the last 5 or so, I've seen North American engineering salaries increase at quite a pace, but I just don't see this happening in the UK. Salaries in my field (embedded software / high-tech) seem stuck at £50-60k tops, whereas the differential to the US/Canada is now close to 100%. Taking approximate local living costs and working hours into account
The cost-of-living seems to have increased at a comparable pace, perhaps even more so in the UK. The exchange rate has varied in that time, but I would have expected pay and costs to adjust accordingly over time to match.
It's puzzling.
I hope this doesn't come across as vulgar - that's really not my intent, it's an honest question. I'm curious as to why.
A few reasons I can think of, with no particular evidence to back it up:
(1) EU membership - whenever workers demand more money, cheaper labour from eastern Europe comes in instead, depressing salaries. During the great recession US & Canada temporarily closed it's doors to some skilled workers from abroad to protect its' labour market. While not a popular decision in some quarters, it was a necessary short-term measure to protect the standard of living.
(2) Lack of free-market mindset - Americans are more likely to proudly vote-with-their-feet on money. Whereas Brits like to just grumble and moan, but carry-on regardless.
(3) Is there some kind of tax-credit or tax-bracket thing going on that I'm not aware of, dis-incentivising moving jobs for higher pay, or stopping companies paying more?
(4) Geographic spread. North American markets are typically focused in several mega-cities meaning it's easier to change jobs without moving home, meaning less workforce 'inertia'. The UK, on the other hand, seems to have the jobs spread out, meaning that changing jobs from say, Bristol to Cambridge, will likely result in house and school moves also, and therefore less likely to happen.
I'm curious, what are peoples thoughts?
When I left the UK nearly 20 years ago, Canadian salaries were about 20-30% higher than the UK for comparable positions. Over the years, particularly the last 5 or so, I've seen North American engineering salaries increase at quite a pace, but I just don't see this happening in the UK. Salaries in my field (embedded software / high-tech) seem stuck at £50-60k tops, whereas the differential to the US/Canada is now close to 100%. Taking approximate local living costs and working hours into account
The cost-of-living seems to have increased at a comparable pace, perhaps even more so in the UK. The exchange rate has varied in that time, but I would have expected pay and costs to adjust accordingly over time to match.
It's puzzling.
I hope this doesn't come across as vulgar - that's really not my intent, it's an honest question. I'm curious as to why.
A few reasons I can think of, with no particular evidence to back it up:
(1) EU membership - whenever workers demand more money, cheaper labour from eastern Europe comes in instead, depressing salaries. During the great recession US & Canada temporarily closed it's doors to some skilled workers from abroad to protect its' labour market. While not a popular decision in some quarters, it was a necessary short-term measure to protect the standard of living.
(2) Lack of free-market mindset - Americans are more likely to proudly vote-with-their-feet on money. Whereas Brits like to just grumble and moan, but carry-on regardless.
(3) Is there some kind of tax-credit or tax-bracket thing going on that I'm not aware of, dis-incentivising moving jobs for higher pay, or stopping companies paying more?
(4) Geographic spread. North American markets are typically focused in several mega-cities meaning it's easier to change jobs without moving home, meaning less workforce 'inertia'. The UK, on the other hand, seems to have the jobs spread out, meaning that changing jobs from say, Bristol to Cambridge, will likely result in house and school moves also, and therefore less likely to happen.
I'm curious, what are peoples thoughts?
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